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Markets Rise on Fed Rate Cut Hopes While Tech Stocks and Autonomous Driving Companies Take Center Stage

MarketDash Editorial Team
14 days ago
U.S. stock futures climbed Monday as investors bet on a December rate cut after Fed's John Williams signaled more policy easing ahead. Meanwhile, autonomous driving stocks rallied, Alphabet overtook Microsoft in market value, and Zoom prepares to report earnings in a holiday-shortened week.

U.S. stock futures started the week on an upbeat note Monday, extending Friday's gains as investors warmed to the possibility that the Federal Reserve might deliver another rate cut next month. It's that time again when everyone becomes a Fed whisperer, parsing every syllable from central bank officials for hints about monetary policy.

This time, New York Fed President John Williams gave markets something concrete to work with. Speaking on Friday, Williams indicated that a December rate cut remains very much on the table, saying "I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral."

Translation: the Fed isn't done easing just yet. Markets heard that loud and clear, with the CME Group's FedWatch tool showing traders now pricing in a 73.5% likelihood of a rate cut at December's Federal Reserve meeting. The 10-year Treasury yield sat at 4.05% while the two-year bond yielded 3.51%.

As Monday morning trading approached, futures across major indices showed green. Dow Jones futures climbed 0.03%, S&P 500 futures advanced 0.30%, Nasdaq 100 futures jumped 0.51%, and Russell 2000 futures gained 0.20%.

The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 indices respectively, were both trading higher in premarket action. SPY climbed 0.19% to $660.28, while QQQ advanced 0.37% to $592.25.

All this positive momentum comes during a holiday-shortened trading week, with Thanksgiving closing markets on Thursday. Investors are juggling Fed speculation with a packed earnings calendar featuring Dell Technologies Inc. (DELL), HP Inc. (HPQ), Deere & Co. (DE), Li Auto Inc. (LI), and several other notable companies reporting results.

Autonomous Driving Stocks Accelerate

Pony AI Partners for Fleet Expansion

Pony AI Inc. (PONY) rose 2.59% in premarket trading Monday after announcing a partnership with ride-hailing platform Sunshine Mobility to build a large-scale autonomous driving fleet. The collaboration represents another step forward in the commercialization of self-driving technology, though the stock has struggled with weaker price trends across short, medium, and long-term timeframes according to market data.

WeRide Reports Explosive Growth

WeRide Inc. (WRD) jumped 7.92% after delivering impressive third-quarter financial results that suggest the autonomous driving industry is gaining real traction. The company's revenue surged 144.3% year-over-year to $24.0 million, but the real headline was gross profit, which skyrocketed 1,123.9% compared to the prior year to reach $7.9 million.

Those are the kind of numbers that make investors sit up and pay attention. When gross profit grows that much faster than revenue, it suggests improving unit economics and operational leverage kicking in. Despite the strong quarterly performance, market data shows the stock has maintained weaker price trends across various time horizons.

Tech Giants and Earnings in Focus

Alphabet Overtakes Microsoft

Alphabet Inc. (GOOGL) (GOOG) gained 2.38% in premarket trading after surpassing Microsoft Corp. (MSFT) in market capitalization on Friday. The catalyst? Last week's launch of Gemini 3 and Nano Banana, which reminded investors that Google isn't sitting still in the AI race despite all the attention paid to competitors.

Market performance metrics show Alphabet maintains stronger price trends across short, medium, and long-term periods, combined with a strong quality ranking. When a company that size can still generate momentum and overtake another tech giant in market value, it's worth paying attention.

Zoom Reports After the Bell

Zoom Communications Inc. (ZM) traded 0.52% higher ahead of its earnings report scheduled for after Monday's closing bell. Wall Street analysts are expecting earnings of $1.21 per share on revenue of $1.21 billion. Yes, you read that right: the same number for EPS and revenue, though obviously in different units. One of those delightful coincidences that makes finance coverage slightly more confusing than necessary.

The video communications company has maintained weaker price trends across short, medium, and long-term periods, though it does sport a strong growth ranking. Investors will be looking for signs that Zoom can continue expanding beyond its pandemic-era boom and prove it's not just a work-from-home story.

Keysight Technologies Earnings Ahead

Keysight Technologies Inc. (KEYS) advanced 0.45% as the market awaited its earnings report due after the closing bell. Analysts expect the company to report earnings of $1.77 per share on revenue of $1.39 billion.

Market data shows the stock has struggled with weaker short-term price trends but maintained strong momentum over medium and long-term periods, though it carries a poor value ranking. It's an interesting setup heading into earnings: positive longer-term trends but recent weakness could mean expectations are tempered.

Friday's Market Performance Sets the Stage

The optimism visible in Monday's futures market didn't appear out of nowhere. Friday delivered a broad-based rally that saw every sector close in positive territory, with communication services, health care, materials, consumer discretionary, and real estate leading the charge.

The Russell 2000 small-cap index stole the show with a 2.80% surge to 2,369.59, suggesting investors were feeling confident enough to venture into riskier territory. The Dow Jones Industrial Average climbed 1.08% to 46,245.41, the S&P 500 gained 0.98% to 6,602.99, and the Nasdaq Composite advanced 0.88% to 22,273.08.

When all sectors finish in green and small caps outperform, it typically signals genuine risk appetite rather than narrow, defensive trading. That kind of breadth is what bull market dreams are made of.

Storm Clouds on the Horizon?

Not everyone is feeling quite so optimistic about the broader picture, despite the positive market momentum. Prominent economic voices are raising concerns about market concentration and policy risks that could undermine American economic leadership.

Investor Ruchir Sharma argues that "American exceptionalism" may be peaking, warning that "America is now one big bet on AI." With artificial intelligence capital expenditure driving 40% of economic growth, Sharma contends this "maniacal focus" is masking serious fiscal vulnerabilities that investors are currently willing to overlook.

He observes that while the market currently offers a "free pass" on mounting deficits, this represents "a good story that's gone too far." His warning is stark: "If the AI boom was not happening, the economy would be weaker." Sharma is advising diversification as the "gap of outperformance" between U.S. and international markets begins to close.

Adding to these structural concerns, Moody's Chief Economist Mark Zandi is sounding alarms about inflation. He warns of a "serious affordability crisis" driven by specific policy choices, particularly tariffs and immigration restrictions that are "juicing" inflation higher.

Zandi's frustration is palpable: "It didn't have to be this way," he notes, but protectionist measures have "upended that outlook," pointing toward "even higher inflation dead-ahead." While Sharma fears a bubble burst from overconcentration in AI, Zandi emphasizes the immediate burden on consumers, predicting that "tough financial times" will persist for the "foreseeable future."

These are two very different concerns pointing in somewhat different directions, but both suggest the current market tranquility might not last forever. Then again, analysts have been predicting doom for years while markets kept climbing, so take the warnings with appropriate skepticism while also not ignoring them entirely.

This Week's Economic Calendar

The holiday-shortened week brings a lighter-than-usual data calendar, but there are still several important releases investors should watch:

Monday brings no scheduled economic data releases, giving markets a quiet start to the week.

Tuesday delivers the bulk of this week's action at 8:30 a.m. ET with September's delayed retail sales data alongside headline and core Producer Price Index figures. At 9:00 a.m., September's S&P Case-Shiller home price index for 20 cities will be released. Then at 10:00 a.m., investors will get August's delayed business inventories data, November's consumer confidence reading, and October's pending home sales figures.

Wednesday morning at 8:30 a.m. brings initial jobless claims for the week ending November 22 along with September's delayed durable goods orders data.

Thursday is Thanksgiving, so markets will be closed and most of us will be arguing about politics with relatives or falling asleep on the couch after too much turkey.

Friday wraps up the week with November's Chicago Business Barometer (PMI) releasing at 9:45 a.m. ET.

Commodities, Crypto, and Global Markets

Beyond equities, other asset classes showed mixed action Monday morning. Crude oil futures traded lower by 0.43% in the early New York session, hovering around $57.56 per barrel.

Gold spot prices rose 0.20% to approximately $4,073.96 per ounce, still well below the record high of $4,381.60 per ounce set earlier this year. The U.S. Dollar Index spot was down 0.04% at the 100.1430 level, showing relative stability in currency markets.

In cryptocurrency markets, Bitcoin (BTC) was trading 0.57% lower at $85,875.64 per coin, continuing to consolidate after its recent rally.

Asian markets closed mostly lower on Monday, with notable exceptions including Hong Kong's Hang Seng and Australia's ASX 200 indices, which managed gains. China's CSI 300 index declined along with India's NIFTY 50, Japan's Nikkei 225, and South Korea's Kospi indices. European markets were trading mostly higher in early sessions, suggesting regional divergence in investor sentiment.

As the holiday week unfolds, markets will be balancing Fed rate cut optimism against concerns about economic concentration and policy risks, all while digesting a steady stream of corporate earnings. It's the kind of environment where anything can happen, which is another way of saying: just another week in the markets.

Back to News

Markets Rise on Fed Rate Cut Hopes While Tech Stocks and Autonomous Driving Companies Take Center Stage

MarketDash Editorial Team
14 days ago
U.S. stock futures climbed Monday as investors bet on a December rate cut after Fed's John Williams signaled more policy easing ahead. Meanwhile, autonomous driving stocks rallied, Alphabet overtook Microsoft in market value, and Zoom prepares to report earnings in a holiday-shortened week.

U.S. stock futures started the week on an upbeat note Monday, extending Friday's gains as investors warmed to the possibility that the Federal Reserve might deliver another rate cut next month. It's that time again when everyone becomes a Fed whisperer, parsing every syllable from central bank officials for hints about monetary policy.

This time, New York Fed President John Williams gave markets something concrete to work with. Speaking on Friday, Williams indicated that a December rate cut remains very much on the table, saying "I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral."

Translation: the Fed isn't done easing just yet. Markets heard that loud and clear, with the CME Group's FedWatch tool showing traders now pricing in a 73.5% likelihood of a rate cut at December's Federal Reserve meeting. The 10-year Treasury yield sat at 4.05% while the two-year bond yielded 3.51%.

As Monday morning trading approached, futures across major indices showed green. Dow Jones futures climbed 0.03%, S&P 500 futures advanced 0.30%, Nasdaq 100 futures jumped 0.51%, and Russell 2000 futures gained 0.20%.

The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100 indices respectively, were both trading higher in premarket action. SPY climbed 0.19% to $660.28, while QQQ advanced 0.37% to $592.25.

All this positive momentum comes during a holiday-shortened trading week, with Thanksgiving closing markets on Thursday. Investors are juggling Fed speculation with a packed earnings calendar featuring Dell Technologies Inc. (DELL), HP Inc. (HPQ), Deere & Co. (DE), Li Auto Inc. (LI), and several other notable companies reporting results.

Autonomous Driving Stocks Accelerate

Pony AI Partners for Fleet Expansion

Pony AI Inc. (PONY) rose 2.59% in premarket trading Monday after announcing a partnership with ride-hailing platform Sunshine Mobility to build a large-scale autonomous driving fleet. The collaboration represents another step forward in the commercialization of self-driving technology, though the stock has struggled with weaker price trends across short, medium, and long-term timeframes according to market data.

WeRide Reports Explosive Growth

WeRide Inc. (WRD) jumped 7.92% after delivering impressive third-quarter financial results that suggest the autonomous driving industry is gaining real traction. The company's revenue surged 144.3% year-over-year to $24.0 million, but the real headline was gross profit, which skyrocketed 1,123.9% compared to the prior year to reach $7.9 million.

Those are the kind of numbers that make investors sit up and pay attention. When gross profit grows that much faster than revenue, it suggests improving unit economics and operational leverage kicking in. Despite the strong quarterly performance, market data shows the stock has maintained weaker price trends across various time horizons.

Tech Giants and Earnings in Focus

Alphabet Overtakes Microsoft

Alphabet Inc. (GOOGL) (GOOG) gained 2.38% in premarket trading after surpassing Microsoft Corp. (MSFT) in market capitalization on Friday. The catalyst? Last week's launch of Gemini 3 and Nano Banana, which reminded investors that Google isn't sitting still in the AI race despite all the attention paid to competitors.

Market performance metrics show Alphabet maintains stronger price trends across short, medium, and long-term periods, combined with a strong quality ranking. When a company that size can still generate momentum and overtake another tech giant in market value, it's worth paying attention.

Zoom Reports After the Bell

Zoom Communications Inc. (ZM) traded 0.52% higher ahead of its earnings report scheduled for after Monday's closing bell. Wall Street analysts are expecting earnings of $1.21 per share on revenue of $1.21 billion. Yes, you read that right: the same number for EPS and revenue, though obviously in different units. One of those delightful coincidences that makes finance coverage slightly more confusing than necessary.

The video communications company has maintained weaker price trends across short, medium, and long-term periods, though it does sport a strong growth ranking. Investors will be looking for signs that Zoom can continue expanding beyond its pandemic-era boom and prove it's not just a work-from-home story.

Keysight Technologies Earnings Ahead

Keysight Technologies Inc. (KEYS) advanced 0.45% as the market awaited its earnings report due after the closing bell. Analysts expect the company to report earnings of $1.77 per share on revenue of $1.39 billion.

Market data shows the stock has struggled with weaker short-term price trends but maintained strong momentum over medium and long-term periods, though it carries a poor value ranking. It's an interesting setup heading into earnings: positive longer-term trends but recent weakness could mean expectations are tempered.

Friday's Market Performance Sets the Stage

The optimism visible in Monday's futures market didn't appear out of nowhere. Friday delivered a broad-based rally that saw every sector close in positive territory, with communication services, health care, materials, consumer discretionary, and real estate leading the charge.

The Russell 2000 small-cap index stole the show with a 2.80% surge to 2,369.59, suggesting investors were feeling confident enough to venture into riskier territory. The Dow Jones Industrial Average climbed 1.08% to 46,245.41, the S&P 500 gained 0.98% to 6,602.99, and the Nasdaq Composite advanced 0.88% to 22,273.08.

When all sectors finish in green and small caps outperform, it typically signals genuine risk appetite rather than narrow, defensive trading. That kind of breadth is what bull market dreams are made of.

Storm Clouds on the Horizon?

Not everyone is feeling quite so optimistic about the broader picture, despite the positive market momentum. Prominent economic voices are raising concerns about market concentration and policy risks that could undermine American economic leadership.

Investor Ruchir Sharma argues that "American exceptionalism" may be peaking, warning that "America is now one big bet on AI." With artificial intelligence capital expenditure driving 40% of economic growth, Sharma contends this "maniacal focus" is masking serious fiscal vulnerabilities that investors are currently willing to overlook.

He observes that while the market currently offers a "free pass" on mounting deficits, this represents "a good story that's gone too far." His warning is stark: "If the AI boom was not happening, the economy would be weaker." Sharma is advising diversification as the "gap of outperformance" between U.S. and international markets begins to close.

Adding to these structural concerns, Moody's Chief Economist Mark Zandi is sounding alarms about inflation. He warns of a "serious affordability crisis" driven by specific policy choices, particularly tariffs and immigration restrictions that are "juicing" inflation higher.

Zandi's frustration is palpable: "It didn't have to be this way," he notes, but protectionist measures have "upended that outlook," pointing toward "even higher inflation dead-ahead." While Sharma fears a bubble burst from overconcentration in AI, Zandi emphasizes the immediate burden on consumers, predicting that "tough financial times" will persist for the "foreseeable future."

These are two very different concerns pointing in somewhat different directions, but both suggest the current market tranquility might not last forever. Then again, analysts have been predicting doom for years while markets kept climbing, so take the warnings with appropriate skepticism while also not ignoring them entirely.

This Week's Economic Calendar

The holiday-shortened week brings a lighter-than-usual data calendar, but there are still several important releases investors should watch:

Monday brings no scheduled economic data releases, giving markets a quiet start to the week.

Tuesday delivers the bulk of this week's action at 8:30 a.m. ET with September's delayed retail sales data alongside headline and core Producer Price Index figures. At 9:00 a.m., September's S&P Case-Shiller home price index for 20 cities will be released. Then at 10:00 a.m., investors will get August's delayed business inventories data, November's consumer confidence reading, and October's pending home sales figures.

Wednesday morning at 8:30 a.m. brings initial jobless claims for the week ending November 22 along with September's delayed durable goods orders data.

Thursday is Thanksgiving, so markets will be closed and most of us will be arguing about politics with relatives or falling asleep on the couch after too much turkey.

Friday wraps up the week with November's Chicago Business Barometer (PMI) releasing at 9:45 a.m. ET.

Commodities, Crypto, and Global Markets

Beyond equities, other asset classes showed mixed action Monday morning. Crude oil futures traded lower by 0.43% in the early New York session, hovering around $57.56 per barrel.

Gold spot prices rose 0.20% to approximately $4,073.96 per ounce, still well below the record high of $4,381.60 per ounce set earlier this year. The U.S. Dollar Index spot was down 0.04% at the 100.1430 level, showing relative stability in currency markets.

In cryptocurrency markets, Bitcoin (BTC) was trading 0.57% lower at $85,875.64 per coin, continuing to consolidate after its recent rally.

Asian markets closed mostly lower on Monday, with notable exceptions including Hong Kong's Hang Seng and Australia's ASX 200 indices, which managed gains. China's CSI 300 index declined along with India's NIFTY 50, Japan's Nikkei 225, and South Korea's Kospi indices. European markets were trading mostly higher in early sessions, suggesting regional divergence in investor sentiment.

As the holiday week unfolds, markets will be balancing Fed rate cut optimism against concerns about economic concentration and policy risks, all while digesting a steady stream of corporate earnings. It's the kind of environment where anything can happen, which is another way of saying: just another week in the markets.